In a move that reinforces its commitment to affordable clean mobility, TVS Motor Company has announced that it will fully pass on the benefits of the concessional 5 percent Goods and Services Tax (GST) rate on electric vehicles to its customers. The announcement comes in light of the GST Council’s recent decision to retain the 5 percent slab for EVs under India’s revised tax structure, which takes effect from September 22, 2025.
This development ensures that TVS electric two-wheelers, including the popular iQube series, will remain competitively priced, offering a significant cost advantage over internal combustion engine (ICE) models. The company has also confirmed changes in its key managerial personnel and compliance structure, signaling a broader strategic alignment with evolving market and regulatory dynamics.
Key Highlights From TVS Motor’s Announcement
- Electric vehicles from TVS will continue to attract only 5 percent GST under the new regime
- The full benefit of the concessional rate will be passed on to customers starting September 22, 2025
- TVS confirms that pricing of its EV lineup will be revised downward to reflect the tax savings
- The company has initiated changes in its board and compliance team to support future growth
- EV ecosystem components like chargers remain taxed at varying rates, but vehicle pricing remains unaffected
Customer Benefits And Pricing Impact
TVS Motor’s decision to pass on the full GST benefit means that customers purchasing electric scooters like the TVS iQube will enjoy lower ex-showroom prices starting late September. This move is expected to boost retail demand and further accelerate EV adoption in India’s two-wheeler segment.
The iQube, which currently retails around Rs 1.25 lakh (ex-showroom), could see a price drop of several thousand rupees, depending on variant and location. With ICE two-wheelers now taxed at 18 percent, the pricing gap between electric and petrol models is set to widen, making EVs a more attractive proposition for urban commuters.
GST Council’s Decision And Its Broader Implications
The GST Council’s September 2025 meeting reaffirmed the 5 percent GST rate on electric vehicles, even as it overhauled slabs for other automotive categories. While ICE vehicles under 350cc now attract 18 percent GST, and larger vehicles face up to 40 percent, EVs retain their concessional status.
However, the EV ecosystem remains fragmented in terms of taxation. While EVs themselves are taxed at 5 percent:
- EV chargers and charging stations as physical goods also attract 5 percent
- Charging services and battery swapping are taxed at 18 percent
- Standalone lithium-ion batteries sold separately are taxed at 18 percent
This asymmetry has raised concerns among service providers, but for end consumers purchasing complete EVs, the pricing remains favorable.
Leadership And Governance Updates At TVS
In parallel with its pricing announcement, TVS Motor has initiated changes in its leadership and compliance structure. The company has filed updates regarding changes in directors, key managerial personnel, auditors, and compliance officers. These changes are aimed at strengthening governance and aligning with the company’s long-term EV strategy.
TVS has been actively expanding its EV portfolio, investing in R&D, and exploring partnerships for battery technology and charging infrastructure. The leadership reshuffle is expected to bring fresh perspectives and operational agility as the company scales its electric ambitions.
Looking Ahead: TVS’s EV Roadmap
1. Continued investment in electric vehicle R&D and platform development
2. Expansion of EV dealership network across Tier 1 and Tier 2 cities
3. Collaboration with charging infrastructure providers to improve accessibility
4. Focus on affordability and performance to capture mass-market demand
5. Advocacy for harmonized GST rates across the EV ecosystem
With over 6.8 lakh electric scooters sold in India in 2025 so far, TVS Motor’s proactive stance on pricing and policy alignment positions it as a key player in India’s clean mobility revolution.
Sources: Angel One Market Updates, Upstox News, CarToq Automotive GST Report
